Construction input prices remained unchanged in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data released today. Nonresidential construction input prices were also unchanged for the month.
Overall construction input prices are 4.9% lower than a year ago, while nonresidential construction input prices are 4.5% lower. Prices decreased in all three energy subcategories in June. Crude petroleum prices were down 5.9%, while natural gas prices fell 5.3%. Unprocessed energy materials prices decreased 5.0% for the month.
“The pandemic-induced period of rapid construction input cost increases is over,” said ABC Chief Economist Anirban Basu. “Today’s Producer Price Index data, along with yesterday’s Consumer Price Index release, show that inflation has slowed, at least with regard to goods prices. This recent moderation is partially due to a drastic improvement in supply chains; both international and domestic freight rates have plunged back toward pre-pandemic levels.
“Despite this recent cooling, construction input prices are still up more than 38% since the start of the pandemic,” said Basu. “That’s over twice the increase observed for economywide prices over that span. Contractor confidence declined last month, according to ABC’s Construction Confidence Index, and the combination of expensive materials, high interest rates that are likely to rise again at the Federal Reserve’s July meeting and tight credit conditions will put downward pressure on construction activity over the next few quarters.”
Related Stories
Codes and Standards | Jun 15, 2022
Waived tariffs on solar panels expected to boost solar power
The Biden Administration recently waived tariffs on solar panels from four countries in a move advocates say will accelerate the clean energy transition and benefit national security.
Cultural Facilities | Jun 15, 2022
Gehry-designed Children’s Institute aims to foster community outreach in L.A.’s Watts neighborhood
The Children’s Institute (CII) in Los Angeles will open a 200,000-sf campus designed by Frank Gehry this summer.
Building Team | Jun 14, 2022
Thinking beyond the stadium: the future of district development
Traditional sports and entertainment venues are fading as teams and entertainment entities strive to move toward more diversified entertainment districts.
Codes and Standards | Jun 14, 2022
Hospitals’ fossil fuel use trending downward, but electricity use isn’t declining as much
The 2021 Hospital Energy and Water Benchmarking Survey by Grumman|Butkus Associates found that U.S. hospitals’ use of fossil fuels is declining since the inception of the annual survey 25 years ago, but electricity use is dipping more slowly.
Healthcare Facilities | Jun 13, 2022
University of Kansas Health System cancer care floors foster community and empathy
On three floors of Cambridge Tower A at The University of Kansas Health System in Kansas City, patients being treated for blood cancers have a dedicated space that not only keeps them safe during immune system comprising treatments, but also provide feelings of comfort and compassion.
Building Team | Jun 13, 2022
Ware Malcomb promotes Matt Chaiken to vice president
Ware Malcomb, an award-winning international design firm, today announced that Matt Chaiken has been promoted to Vice President in the firm’s Denver office.
Building Team | Jun 13, 2022
Partnership rethinks emergency shelters to turn them into sustainable, resilient homes
Holcim and the Norman Foster Foundation have struck a partnership to rethink emergency shelters to turn them into sustainable and resilient homes.
Building Team | Jun 13, 2022
A mixed-used building to rise above Fort Lauderdale, with views of downtown and the ocean
ODA, a New York-based architecture and design studio, recently released renderings of Ombelle, a project including two residential towers in Fort Lauderdale, Fla.
Office Buildings | Jun 13, 2022
San Antonio’s electric utility HQ to transform into a modern office building
In San Antonio, Tex., the former headquarters of CPS Energy, the city’s electric utility, is slated to transform into 100,000 square feet of office and retail space on San Antonio’s famed River Walk.
Cultural Facilities | Jun 10, 2022
After 10 Years, Taiwan’s new Taipei Music Center Reaches the Finish Line
RUR Architecture has finished the Taipei Music Center (TMC), turning a 22-acre (9-hectare) site into a new urban arts district.